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14. (Ignore income taxes in this problem.) Messersmith Corporation is investigating automating a process by purchasing...

14. (Ignore income taxes in this problem.) Messersmith Corporation is investigating automating a process by purchasing a machine for $688,000 that would have an 8 year useful life and no salvage value. By automating the process, the company would save $160,000 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $19,000. The annual depreciation on the new machine would be $86,000. What percent is the simple rate of return on the investment closest to?
    
A. 23.3%
B. 12.5%
C. 11.1%
D. 10.8%
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